Recent newsflow from China suggest that the country’s real estate market is poised for a sharp slowdown and the heavily controlled financial sector is sitting on huge piles of NPAs which are as yet undeclared.While I don’t think a crash will happen in China , I feel more certain that the stellar growth in China […]

The growth in income disparity around the world is striking.The internationalization of capital and trade has led to increasing amounts of income for the top percentiles of the world population while the bottom percentiles share of income continues to decline.This has not only been happening in developing countries like Russia,India ,Egypt but also in some […]

The politicians keep saying that the sovereign debt fears related to their country are a complete hogwash but these fears keep coming true with nasty regularity.Dubai’s leader at an investment conference 2-3 months before the crisis said he had nothing to fear before the debt crisis reached a peak for Dubia.Same thing happened with Greece […]

For the last few days the Shanghai and Southern European markets of Spain,Greece and Portugal have been falling despite higher US stock indices.This is a bit anomalous since most of the equity markets are  highly correlated due to the globalization of financial capital..Gold has also been continuously rising despite fall in  prices of other commodities […]

Greece agreed on a plan with EU-IMF which requires sharp spending cuts and tax increases on Sunday to get their hands of more than 100 billion Euros of support. But Greece is no Iceland or Latvia where the people will live with massively painful cuts on their standard of living. Strikes and protests are increasing […]

German Economy Minister and Free Democrat Party Leader ( FDP is one of the junior partners in the ruling coalition and stands for its pro-business liberal policies) says he does not expect another bailout . Where does that leave Portugal and Spain which had their debt downgraded last  week by S&P. I am guessing that […]